Telefônica Brasil S A : Results Presentation 1Q21

R E S U LT S

1Q21

Telefônica Brasil S.A.

Investor Relations

May 12th, 2021

DISCLAIMER

This presentation may contain forward-looking statements concerning future prospects and objectives regarding growth of the subscriber base, a breakdown of the various services to be offered and their respective results

Our actual results may differ materially from those contained in such forward-looking statements, due to a variety of factors, including Brazilian political and economic factors, the development of competitive technologies, access to the capital required to achieve those results, and the emergence of strong competition in the markets in which we operate

The exclusive purpose of such statements is to indicate how we intend to expand our business and they should therefore not be regarded as guarantees of future performance

2

SOLID UNDERLYING OPERATING TRENDS DRIVING THE ACCELERATION OF CORE REVENUES, RESULTING IN TOTAL REVENUE GROWTH IN 1Q21

96 million total accesses

46mn 3.7mn

Mobile Postpaid	FTTH¹
Accesses	Homes Connected
+1.1 million postpaid net	+41% YoY, with a record of
adds, the highest since	368 thousand net adds
2017	Customer Base
	Growth

Profitability

R$	R$
4.5bn	2.2bn
Recurring	Free Cash Flow4
EBITDA³ 1Q21	1Q21
+0.5% YoY	+3.7% YoY

	88.1%	R$
	1.0bn
	Core Revenues/	FTTH¹
	Total Revenues²	Revenues 1Q21
	growing +4.7% YoY, resuming	+61.2% YoY
Revenue	Total Revenue growth (+0.2%)
Generation

Shareholder

Remuneration

R$	5.4mn
700mn
Shareholder Remuneration	Shares in
	treasury6
Declared YTD215
7.9% Dividend Yield in LTM5	0.32% of Total Capital

1 - Fiber-to-the-Home.

3 2 - Core Revenues include Total Revenues ex-Fixed Voice, xDSL and DTH.

3 - Excluding non-recurring effects of R$75.7 from the sale of towers and rooftops in 1Q20. 4 - Free Cash Flow after Leases.

5 - Up to April 2021. LTM considers the remuneration of preferred shares before the unification of share classes on November 23rd, 2020.

6 - Up to April 2021

VIVO IS TRANSFORMING ITS REVENUE PROFILE AS CORE BUSINESSES REPRESENT ALMOST 90% OF REVENUES

Core Businesses
Mobile	Handsets
FTTx	IPTV
Digital	Data
Services	and ICT

Non-Core Businesses

Fixed ADSL DTH

Voice

Total Revenues¹

R$ million, %

10,825 10,849 +0.2%

84.4% 88.1% +4.7%

vs. 3.2% YoY

in 4Q20

15.6% 11.9% -24.1%

1Q20 1Q21

Revenues from Core Businesses

R$ million

9,131	9,563	+4.7%
2,060	2,416	+17.2%

7,070 7,147 +1.1%

Fixed²

Mobile³

1Q20 1Q21

Core Businesses		Non-Core Businesses

1 - Mobile Revenues: +1.1% YoY, Fixed Revenues: -1.4% .

4 2 - Includes FTTH, FTTC, IPTV, Data & ICT, Wholesale Revenues and others. 3 - Mobile Revenues includes Handset Sales.

SUSTAINING MOBILE REVENUE GROWTH DRIVEN BY STRONG PREPAID COMMERCIAL ACTIVITY AND HANDSET SALES

Mobile Revenues

R$ million

7,070

581

1,176

Handset Sales

Prepaid

Postpaid¹

5,314

1Q20

7,147 +1.1%

644

1,222 +4.0%

5,281 -0.6%

1Q21

Postpaid

vivo easy

ARPU improvement through Vivo		Co-creation of Vivo Easy, a 100%
Selfie co-branded plans, offering
	digital plan focused on younger
digital content and increasing
	audiences, with DJ Alok
customer loyalty

Prepaid

Digital Top-ups	# of Customers
topping-up
+28.8%	+8.3%

1Q20

1Q21

1Q20

1Q21

More intense use of digital		Increased demand for connectivity
channels through customer base		and the recognition of Vivo's
incentives and increasing adoption		superior quality driving higher
of Meu Vivo (e-Care app)		customer base activation

5 1 - Postpaid revenue including M2M, dongles, wholesale and others.